european investment bank · portfolio 2007 - 2016 eur 9.6bn nc east 2016 eur 1.8bn eib signed loans...

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European Investment Bank

Supporting Corporate Investments in Ukraine

February 2018

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EIB’s activities outside the European Union

EIB’s Activities in Ukraine

Support to the Private Sector

The EIB1

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The EIB: the EU bank

Largest multilateral lender and

borrower in the world

Shareholders: 28 EU Member States

HQ in Luxembourg with 40 local

offices

Around 3000 staff (finance

professionals, but also engineers,

sector economists and socio-

environmental experts)

Around 450 projects each year in

over 160 countries

AAA-rated by the three major rating

agencies

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Our Priorities in 2016

SMEsInfrastructureEnvironment Innovation

EUR

16.7bn

EUR

18bn

EUR

13.8bn

EUR

29.6bn

EIB Group

5

0

50

100

150

200

250

300

Italy France UK** Germany Spain EIB Netherlands Belgium Austria Portugal Finland

2017

2018 (e)

… and compares with that of

certain EU Governments

* Fiscal years from 1 July to 30 June

** Gross financing requirement for FY2016-17 / 2017-18

Source: Barclays research/ best efforts estimates as of 19 January 2018

Data collated from a mixture of official reports and bond market analysis systems such as Dealogic

0

20

40

60

80

EIB KfW IBRD -WorldBank*

ADB IADB IFC* NIB AfDB EBRD

2017

2018 (e)Volume of issuance is

larger than all other

supranationals and most

Government agencies …

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The EIB

EIB’s activity in Ukraine


EIB’s Activities outside the European Union2

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EIB Group Activity Outside the EU

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EIB Group Activity Outside the EU

Outside EU Lending

EIB Group

EUR 78.16bn

Outside

EU

EUR

7.91bn

Eastern

Neighbours

EUR 0.88bn

Africa,

Caribbean,

Pacific,

South Africa

EUR

1.47bn

EFTA &

Enlargement

Countries

EUR

1.63bn

Mediterranean

EUR 1.96bn

Asia and

Latin America

EUR 1.99bn

• The EIB finances projects in some 140 non-EU countries.

• EIB lending outside the EU accounts for some 10% of its global activity.

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Ukraine, 54%

Armenia, 3%

Georgia, 13%

Kazakhstan, 4%

Azerbaijan, 1%

Moldova, 7%

Tajikistan, 1%

Russia 16%

Kyrg.1%

Loan portfolio to date in

Eastern Neighbouring

Countries and Central Asia

NC East Portfolio2007 - 2016

EUR 9.6bn

NC East

2016

EUR

1.8bn

EIB Signed LoansNC East signed loans – by country

NC East signed loans – by sector

SMEs, 41%

Transport, 23%

Energy, 16%

Environmt.6%

Other, 10%

Corporate, 4%

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The EIB

EIB’s activities outside the European Union


EIB’s Activities in Ukraine3

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Ukraine Special Action Plan, EUR 3bn for 2014-2016

Investing in Ukraine’s Future! Ukraine Task Force

Created to focus on the Special Action Plan Ukraine2014 – 2016 and beyond.

Works along the entire project cycle, and, throughcooperation with all relevant stakeholders, has beeninstrumental in addressing specific needs of Ukrainiancounterparts.

As a result, several innovative projects were broughtto implementation stage, for instance:

Ukraine Agri-Food Loan Ukraine Higher Education

Early Recovery Programme Municipal Infrastructure Programme

March 2014

The European Commission announced acomprehensive EUR 11bn assistance plan tosupport Ukraine .

March 2014

EIB pledged to finance EUR 3bn new investmentsover the period 2014 – 2016.

December 2016

EIB fully delivered on its promise:₋ Signed 15 transactions for more than EUR 3bn

across various sectors₋ Provided advisory support alongside its financing

Ukraine Special Action Plan - EUR 3bn for 2014-2016

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Development of the

local private sector, in

particular SMEs

Development of social

and economic

infrastructure

Climate change

adaptation and

mitigation

625 640

413

940

1 258

826

352

0

200

400

600

800

1 000

1 200

1 400

2011 2012 2013 2014 2015 2016 2017

Ukraine Special

Action Plan

External Lending

Mandate

Loans portfolio development

(EUR m)

Loan portfolio

breakdown


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The EIB

EIB’s activity outside the European Union

EIB’s Activities in Ukraine

Support to the Private Sector4

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Private Sector Development

Key private sector projects financed by the EIB

UKREXIMBANK LOAN FOR SMES & MID-

CAPS

EUR 100m

2013

UNICREDIT LOAN SME & PRIORITY

PROJECTS

EUR 140m

2013

PROMINVESTBANK LOAN SMES & MID-

CAPS

EUR 200m

2013

OSCHADBANK LOAN FOR SMES & MID-

CAPS

EUR 220m

2013

UKRAINE AGRI-FOOD APEX LOAN

EUR 400m

2015

APEX LOAN FOR SMES & MID-CAPS

EUR 400m

2014

Banks

MHP AGRI-FOOD

EUR 85m

2014

ASTARTA AGRI-FOOD

USD 43m

2017

NIBULON

USD 74m

2016

Corporates

AGROFUSION

EUR 23m

2017


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Microfinance

Supporting micro-

enterprises by

providing financing

to local microfinance

institutions

Agri-food Value

Chains

Providing technical

assistance for

capacity building

activities and

business planning

and credit application

support services to

the SMEs

Guarantee Facility

Offering SME loan

guarantees to local

banks via the

European

Investment Fund

(EIF), enabling them

to provide wider

access to finance for

SMEs

Deep and Comprehensive Free Trade Area

(DCFTA) Initiative East

Under implementation

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EIB Intermediated Lending

Loans to

SMEs and MidCaps

Advisoryincluding training, institution building,

etc.

(EPTATF, NIF, others)

Loans to

CorporatesProviding support to the economic and

social development of the country, thereby improving the life of citizens

Higher risk projects for innovation

InnovFinProviding risk financing to stimulate entrepreneurship and innovation.

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Loan guaranteed by the Group

ECA/Commercial Bank(s)

(Outside UKR)

Local Promoter/Borrower

Borrowers’ parent

(outside UKR)


Intra-group

GuaranteeLoan(s)

The EIB lends the funds directly to the

borrower and also signs a first-demand

guarantee with a commercial bank. The

EIB covers the political risk.

The EIB finances the local borrower

directly and benefits from a first-

demand guarantee from the group

located outside the country. The EIB

covers the political risk.

Loan(s)Guarantee

Loan guaranteed by a bank

Premium

The EIB will cover political risk if a non-Ukrainian guarantor covers the commercial risks.

Loans to Corporates - Funding options

Unsecured Loan


Promoter’s group

Loan(s)Guarantee

The EIB does not benefit from an

investment grade guarantee. Pricing of

the loan will be set accordingly.

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Total investment cost min EUR 40 mln

EIB’s share in financing not more than 50% of total investment cost

Tenor Depending on the project lifecycle, up to 7 years usually

Grace period Depending on the construction period

Currency EUR or USD

Specific requirements Compliance with Environmental and Social Standards

Project related conditions

Financial covenants

Collaterals Standard package of pledges over assets

If available, first-demand guarantee issued by BBB- min.

graded entity

Political Risk Guarantee Political risks are covered by the EU

General Conditions

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EIB Intermediated Lending

Loans to

SMEs and MidCaps

Advisoryincluding training, institution building,

etc.

(EPTATF, NIF, others)

Loans to



Higher risk projects for innovation

InnovFinProviding risk financing to stimulate entrepreneurship and innovation.

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Loans to



InnovFin Product Overview

21EUROPEAN INVESTMENT BANK

Direct long term debt and mezzanine finance: EUR 7.5m – EUR 25m

Loans can be structured as economic equity (silent participation)

For innovative Mid-Caps and SMEs (eligible counterparty concept)

EIB can finance up to 50% of all investments over 3 years

Streamlined EIB approval process

EIFInnovative

Mid-Caps3,000 Employees

Growth Finance / Mezzanine

EUR 7.5 to 25m

How does MidCap Growth Finance work?


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Loans to



InnovFin Product Overview

23EUROPEAN INVESTMENT BANK

EIFLarge ProjectsEUR 50m – EUR

600m

Direct Lending

EUR 25m - EUR 300m

How does InnovFin Large Projects work?

Senior debt (pari-passu with other senior lenders)

Eligible project required. EIB finances up to 50% of R&D and innovation investments

Comprehensive due diligence including project due diligence (technical, financial, economic)

EIB standard documentation


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EIB project cycle

EIBproject cycle

Step 1 Proposal

Step 2 Appraisal

Step 3 Approval

Step 4Signature

Step 5Disbursement

Step 6 Monitoring

and reporting

Step 7 Repayment

• Financial

• Economic

• Social

• Environmental• Technical

assessment

• EIB Management Committee

• EIB Board of Directors

Finance contract is signed

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Thank you!

Anastasiya Kharlan

Business Analyst

Kyiv Representative Office

Phone: +38 (067) 240 24 20

email: [email protected]


101 Volodymyrska Street

01033 Kyiv, Ukraine

Jean-Jacques Soulacroup

Senior Corporate Banker

Corporate lending for Eastern Partner

Countries

Phone: (+352) 4379 86730

email: [email protected]


98-100, boulevard Konrad Adenauer

L-2950 Luxembourg.

european investment bank · portfolio 2007 - 2016 eur 9.6bn nc east 2016 eur 1.8bn eib signed loans...

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